Sunday, May 3, 2009

The leadership role in organizations: Improving organizational effectiveness and employee well-being

This research study uses the People Value Cycle to analyze leadership behaviors in organizations involved in transformational change processes. The study revealed that visionary, innovative, ethical, risk taking, and results oriented leadership improve organizational effectiveness and employee well-being.Since ancient times, leaders have played a pivotal role helping individuals, groups and organizations to transform, and adapt to new conditions. With an increasingly faster pace of change in today’s business environment, there is a need for true leaders. The question here is, how to develop leadership?

The people value cycleThe people value cycle is an organizational development (OD) methodology composed of two dimensions: the organizational dimension and the employee dimension. The organizational dimension includes four phases to plan, renew, leverage, and reward talent. It is supported by dialogue and double-loop learning practices to enhance organizational learning, and promote continuous innovation and change. The employee dimension includes four phases to guide individuals in planning their work and career objectives, performing to deliver results, connect one’s work with key initiatives and network with stakeholders, and renew own skills, mental models and behaviors. The employee dimension is supported by leadership; an individual quest for depth, freedom and free will. The People Value Cycle sustains that organizations can not sustain a value-oriented culture without committed individuals that support this effort. At the same time, these individuals do not produce value without a value-oriented organization. The people value cycle has its full potential when both dimensions are combined and connected.

What is leadership?The Oxford Dictionary provides the simplest definition of a leader “the person followed by others” (p.450), thus leadership implies the ability to influence others. Koestenbaum (1991) considers that leadership is an act of will “Leading requires changing not only the way you think and the way you act, but also the way you will. Leading is taking charge of your will –the innermost core of your humanity”. (p. 2). Furthermore, Koestenbaum considers that leadership has the strategic and the personal sides. “The strategic side may deal with leadership practices and behaviors, but the personal side deals with the free decisions that human beings make about values and how to treat one another and themselves” (p. 5). Goleman (1995) considers that leadership requires the ability to persuade, not dominate others “Leadership is not domination, but the art of persuading people to work toward a common goal” (p.149 ).

Bennis and Nannus (1985) consider that leaders must establish a deep relationship with the group, to identify and represent the group’s interests “It is collective, there is a symbiotic relationship between leaders and followers, and what makes it collective is the subtle interplay between the followers’ needs and wants and the leader’s capacity to understand, one way or another, this collective aspirations…Leadership can move followers to higher degrees of consciousness, such as liberty, freedom, justice and self actualization” (p. 202-203). The authors made a clear difference between leadership and management, for them management means to be in charge of something, to have the responsibility, while leadership is the ability to influence others, to guide them in a defined course, direction, or action. Other authors present different perspectives that challenge the traditional mental models of leadership, Greenleaf (1996) for example, introduced the concept of leader as a servant “The servant leader is servant first…It begins with the natural feeling that one wants to serve, to serve first. Then conscious choice brings one to aspire to lead. That person is sharply different from one who is leader first”. (p.13). Furthermore, Block (1993, 1996) introduces an interesting and alternative concept: Stewardship, where he challenges traditional lines of command and control, organizational structures and the distribution of power. He proposes a new order fostering democracy, service, responsibility and partnership. “Stewardship holds the possibility of shifting our expectations of people in power. Part of the meaning of Stewardship is to hold in trust the well being of some larger entity –our organization, our community, the earth itself”. (p. 41)

What are the necessary attributes of a leader?Koestenbaum considers that a leader is a combination of competence and authenticity. Competence is the level of mastery in the job, a person that achieves superior results, and authenticity is a person with character, someone who can be trusted. A common ability identified by all authors on effective leaders is the ability to influence others, in this regard, Schein considers that leaders make a big influence in their groups “In growing organizations leaders externalize their own assumptions and embed them gradually and consistently in the mission, goals, structures, and working procedures of the group” (p. 375). One important attribute of leaders is their capacity to learn, to adapt and make a difference. What is learning?, and most important, how can we use learning to develop our leadership skills? Marquardt & Reynolds (1994) consider that “Learning is generally defined as a process by which individuals gain new knowledge and insights to change their behavior and actions. It is traditionally divided into the cognitive (intellectual), affective (emotional) and Psychomotor (physical) domains” (p. 35).

Data collectionThis leadership research project included a web-based survey, and the analysis of company-related information. A sample of seven employees completed the web-based survey --four middle-level leaders and three senior-level leaders. The survey questionnaire included nine appreciative inquiry (AI) questions to identify the leadership behaviors required to instigate planned-change interventions that improve organizational effectiveness and employee well-being. I decided to use AI because I see leadership as a major goal, as an ideal for everybody. Frequently, in research projects, we use a deficit approach method to identify gaps. I disagree with this approach when analyzing leadership, because leadership presents endless opportunities. Measuring leadership would limit its opportunities, therefore I decided to identify key leadership characteristics and behaviors. French and Bell (1999) mention the four principles of AI on organizations: “research should begin with appreciation, should be applicable, should be provocative, and should be collaborative” (p. 139).

The organizational dimensionPlanEffective leaders develop plans that support organizational business priorities and objectives. Survey responses revealed three leadership behaviors required to effectively plan, even on unpredictable circumstances: business savvy, good listening skills, and the ability to build strong teams.RenewLeaders must create a positive environment to allow others to learn, experiment, and take risks. Survey responses evidenced the need for leaders to alter the organizational culture, and reinforce continuous change and renewal. Survey participants considered the following behaviors paramount: coaching and mentoring, building trust, empowering others, and providing continuous feedback.LeverageSurvey respondents reinforced the importance to partner and leverage business strategies, and bridge boundaries to bring multiple parties together. The leadership characteristics required to effectively leverage business strategies are: flexibility, openness, listening skills, and the ability to build networks.RewardsSurvey responses revealed that competent leaders appreciate their staff, noticing those moments when someone is acting at his/her best, and recognizing accordingly. The leadership characteristics that promote these behaviors are those associated with the characteristics of servant leadership: humility, empathy, fairness, impartiality, and providing opportunities to tackle new challenges.

The employee dimensionPlanSurvey responses evidenced the importance for leaders to develop a shared vision of the future. This requires the ability to truly listen to the ideas of others without judging, criticizing or attacking these ideas, asking "soul-searching" questions, and leveraging on others' views. Planning is a team game, not an individual activity.PerformSurvey results revealed the importance to develop innovative and thorough solutions for today’s complex problems. Main leadership behaviors described to effectively perform are the following: commitment to results, thinking out of the box, while developing a pragmatic, analytical and rational mindset (innovative and realistic at the same time!), taking into account both technical aspects, and group and organizational processes.ConnectSurvey respondents evidenced the need to build and maintain effective networks. Respondents mentioned the following leadership behaviors: empathy, humility, expressing disagreements tactfully, and, valuing and allowing others to contribute (everyone analyzes, everyone considers ways to improve, streamline, reduce costs, etc.).RenewSurvey respondents evidenced the need for continuous change and renewal. They consider that leaders build bridges for the future. Respondents imagined a positive work environment with true collaboration, continuous learning, and new opportunities for everyone.

Additionally, survey respondents were asked to identify what three things they would do to heighten the overall health and vitality of their organization. The responses? Orientation to results, more delegation and empowerment, continuous learning and growth, and a more ethical and social responsible culture.

After reading these behaviors you may ask, why these behaviors and not others? -- the same question I have, however, I find these behaviors useful. Do you want to build up on your strengths? Try Koestenbaum's formula to develop leadership: competence plus authenticity (you have to be very good in what you do, and a human being with strenghts, weaknesses, and a unique personality!).

Do you have another formula? Please, share it with us. The business world is looking for true leaders!

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About Me

Armando writes here on a personal basis as an OD practitioner. The opinions expressed are entirely those of the author and should not be attributed in any manner to his current work. Armando has more than 18 years of experience in Organizational Development and Human Resources Management. He has worked for leading global organizations, global consulting firms, and international development organizations.
Armando holds a Masters in Organizational Development and HR from Johns Hopkins University-Carey Business School, and a BS in Business Administration from the National University of Mexico (UNAM).